In its latest client note, Westpac’s analysts made downward revisions to the NZD/USD price forecast, citing strengthening US dollar and downbeat New Zealand’s fundamentals as some of the key reasons.
“The US dollar should strengthen further if the Fed hikes further this year, and that will push NZD/USD lower.
In addition, the NZ-US interest rate advantage has been eroded, removing one of the previous attractions of the NZD.
Further, domestic data is indicating the NZ economy is slowing. We expect NZD/USD to fall to 0.64 or lower by year end.”
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